This paper analyzes the tradeoffs associated with relying on performance versus ability measures in executive compensation. We propose a principal-agent model in which the principal designs the compensation scheme to be contingent on the outcome of interest to the principal along with a noisy...

We model an economy where it is beneficial for high-type organizations to collaborate with other high types, and where this assortative-matching pattern allows informed financiers to provide inexpensive funds to partner companies of their high-type ventures. The expected funding benefit...

In this paper, we employ a sequential production setting in order to study the tradeoff between timeliness and accuracy of a signal about productivity. An information externality arises because the upstream agent's information is disseminated to the downstream agent, and affects production...

We study a principal's choice of whether to produce an imperfect forecast about a firm's outcome either before or after an agent's effort choice. The early forecast affects the agent's effort choice, which means the forecast can also be used to infer information about the effect of the agent's...

Co-operative organizations have a unique property and decision rights distribution system that involve management problems and transaction costs. Such structure creates equity rights and risk transfers that directly affect these organizations' self-management efficiency. This paper analyses...

I reexamine whether media articles with substantive editorial content inform the market's reaction to firms' earnings news. Using variation in earnings announcement coverage because of restructuring at The Wall Street Journal (WSJ), my analyses suggest that WSJ earnings articles improve price...

This study provides evidence on the role of public firms’ financial reports in the state-bond secondary market. I investigate the informational role of corporate earnings announcements and find that public firms’ monthly earnings signals aggregated to the state level are positively...